Vietnam Airlines, the flag carrier of Vietnam, has apparently signed a memorandum of understanding (MoU) with the Singapore headquartered ST Aerospace to boost its aviation operations. As per reliable reports, the latest agreement was signed at the Vietnam-Singapore Business Forum recently organized in Singapore.

Reportedly, both the firms would create a joint venture that would assist ST Aerospace to provide Vietnam Airlines with Maintenance, Repair, and Overhaul (MRO) solutions. Based at the Noi Bai International Airport in Hanoi, the joint project would cater to the requirements of Vietnam Airlines and the nation’s escalating needs for aircraft MRO services.

Speaking on the new endeavor of the firm, Chairman of ST Aerospace, Lim Serh Ghee was quoted stating that strategic partnerships with renowned industry players such as Vietnam Airlines would assist the company in penetrating high-growth markets and enhance the regional footprint. He further stated that the sturdy economic growth across Asia Pacific nations has formed an ideal setting for the rapid advancement of the aviation sector in the region and the double-digit growth of Vietnam’s air travel sector reflects this trend.

For the record, the latest deal was one among the 16 MoUs signed in the presence of Singapore’s National Development Minister Lawrence Wong and Vietnam’s Premier Nguyen Xuan Phuc who is on a state visit to Singapore.

As per reliable sources, the aircrafts in Vietnam are sent abroad to shorten their turnaround time for repairs and maintenance. With the signing of the latest agreement, it is expected that these maintenance works would now be carried out in Vietnam itself. This would apparently add higher operational efficiency to the aircrafts and save costs.

Reportedly, both the firms have inked a separate 14-year component Maintenance-By-the-Hour (MBH) contract. As per the terms of this agreement, ST Aerospace would establish an inventory base in the country to offer timebound assistance to Vietnam Airlines.